Daniel Hest

In senior care M&A, churn isn't just operational, it's a valuation multiplier working against you. What investors underwrite in retention: 1️⃣ Client LTV durability → How long revenue relationships survive ownership transition 2️⃣ Referral source stability → Partner retention rates that prove relationship transferability 3️⃣ Payor continuity → Contract renewals that demonstrate margin predictability beyond closing When churn compresses, valuation expands. When retention proves transferable, diligence becomes confirmation. At QuadHealth Dynamics, we help NEMT, Home Health, and Adult Daycare operators build retention systems that turn client relationships into underwritable assets, so continuity becomes a competitive advantage, not a founder dependency. If you're evaluating acquisition targets or building for strategic exit, let's talk about retention architecture. [Any valuation or multiple reference is illustrative, not a guarantee.]

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I spoke with Christien Louviere of BDE Capital about his journey from a $330mm exit to becoming an independent sponsor. Christien shared excellent insights for folks looking to partner with business owners, rather than buy sellers out completely. Below are a few of the topics we covered: - Why he moved from “zero-to-one” startups to a buy-then-build strategy - How Christien's background shaped a focus on growth vs. cost-cutting - Why 20–40% rolled equity is central to his deal structures—and how it builds trust with sellers - Using scenario analysis with AI tools to evaluate management teams and uncover hidden key-person risks - How to identify when a $3–5M EBITDA company truly has a middle management layer—or is still founder-reliant For anyone investing in or buying small businesses, Christien’s approach provides a fresh lens on growth, alignment, and deal structuring. 🎥 Watch the full interview here → https://lnkd.in/ekfkaiej 🎧 Listen on Spotify: https://lnkd.in/e86Agx6V

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If you’re a founder building a company in complex or industrial markets, the most aligned CVCs are often the legacy, industry-rooted ones (many of them based right here in the Midwest). These are groups that want to pilot, deploy, and actually change how the business operates. When a corporation leverages their venture program designing it for real integration and applied learning, everything moves faster...for everyone involved. Read the full article on StartMidwest: https://lnkd.in/g8qWkUNN

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Agency M&A is on fire. 🔥 At Merge, we’re seeing more activity than ever, especially for agencies valued under $20M. Buyers are coming from every direction: PE-backed platforms, strategic acquirers, and first-time entrepreneurial buyers. It’s simple economics: demand is outpacing supply. Here’s what’s happening in the market 👇 1️⃣ The sub-$20M sweet spot This is where the action is, and it’s all about the size of the buyer pool. At this level, agencies attract interest from every buyer type: strategic acquirers, PE groups, entrepreneurs, and even financial or silent investors. The moment you move above $20M, that pool narrows fast, leaving mostly private equity. Under $20M, the field is wide open, and that competition is driving pricing and velocity. 2️⃣ The rise of the entrepreneurial buyer A few years ago, agency M&A was dominated by PE firms and large strategics. Not anymore. Now everyone wants to be an entrepreneur, and agencies have become one of the most accessible, profitable entry points. Today’s market is full of independent entrepreneurs, many using SBA financing to buy their first agency. This new wave of buyers is keeping demand hot and competition fierce. 3️⃣ The AI effect (and reality check) Last year, everyone was nervous about AI. Now buyers are confident. AI is reshaping (not replacing) the landscape. Brands still need to drive growth, visibility, and revenue. The agencies leveraging AI intelligently, not fearing it, are the ones commanding premium multiples. 4️⃣ Story clarity wins every time If a buyer can instantly understand what you do and who you serve, you’re already ahead. The agencies getting the most attention have a crystal-clear story, whether that’s a defined vertical or a sharp capability focus. You might alienate some buyers, but for the right one, you’re a perfect fit. ❤️ 5️⃣ Down year? Still sellable. Revenue dips aren’t deal killers. Buyers care about normalized profitability and strategic fit. If you’ve right-sized your team and tightened margins, we can adjust the expense base in modeling, and buyers will still line up if the fundamentals are strong. What we’re seeing on multiples 💰 • Agencies under $2M in adjusted EBITDA: 3–6× • Agencies over $2M: 5–8× Where you fall within that range depends on what you do, how well you do it, and the risks buyers perceive about your agency. Typical structure: 💵 Majority cash at close 📈 Performance-based earnouts 🤝 Rollover equity when there’s a platform angle Bottom line: The agency M&A market is booming. Smart founders are taking advantage of it. The “wait and see” crowd is missing the moment. 💬 Send me a message to talk about what your agency is worth in today’s market!

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More companies are betting on first-time CFOs - but what sets the successful ones apart? My colleague Matt Quinn shares his perspective, and Gabriel Ventura, first-time CFO of Mr. Greens Produce, offers five lessons from his first year in a PE-backed seat: https://lnkd.in/eUma_Wq3

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More companies are betting on first-time CFOs - but what sets the successful ones apart? My colleague Matt Quinn shares his perspective, and Gabriel Ventura, first-time CFO of Mr. Greens Produce, offers five lessons from his first year in a PE-backed seat: https://lnkd.in/egxjbfUR

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At Venture Investors Health Fund we have experienced the impact that funds of funds (FoF) can have on capital availability. Our first experience was with the Venture Michigan Funds, two state sponsored funds of $95M and $120M. That’s big enough to make a large enough commitment to justify opening an office in the state (at least $15M). The idea was to attract experienced firms from out of state and their syndication networks. The commitment couldn’t be more than 25% of a fund and the funds had to invest at least that amount in Michigan. It worked. They stopped collecting data in 2018, but by that time, the funds had invested $264M in 56 Michigan companies. Through syndication, total invested was $1.71B (6.45x). VMF 1 returned 1x by 2018, and VMF 2 was 3x. Annual economic impact had grown to $303M. That data was before HistoSonics, Inc. got FDA approval triggering its meteoric rise. The company may have never gotten off the ground without VMF. Series A had 5 funds, 4 from Michigan, 3 of which opened a MI office because of VMF. Badger Fund is also State funded, but the first fund was only $25M, so they pursued a different strategy of helping launch first time funds, resulting in new funds across the state. We need that too, and it has impacted the number of funds and companies able to get VC backing. NVNG Investment Advisors, LLC is a private effort targeting corporate investors. We need more participants in the asset class, but small institutions and companies can’t always make the scale of investment to get diversification or hire the in house expertise for fund selection. A FoF like NVNG provides that. All different, all playing important roles. To be an Exempt Reporting Advisor, 80% of investments need to be directly into companies, precluding FoFs. The DEAL Act would lower the threshold to 50%, so a FoF that did 50% direct co-invest could qualify, lowering the barrier to formation. Ask Congress to make that happen.

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One of the most misunderstood frameworks as it relates to the A-player, B-player, etc. framework - here's some ready to re-familiarize yourself https://lnkd.in/gMTT2p3T Only more experience people are A-players, right? Here is a summary - A Players (10-20%): High performers who exceed expectations and solve problems proactively - found at any level, including driven juniors who learn rapidly - B Players (70-80%): Reliable performers meeting expectations, forming organizational backbone - includes experienced staff, some with A-player potential - C Players (10%): Persistent underperformers requiring excessive oversight - not about inexperience but ongoing performance issues despite feedback Key differentiators: A players seek feedback (constantly), take risks, mentor others, and achieve goals resourcefully - traits that transcend seniority Talent implications: Invest in A players, develop B players, address C players decisively - junior A players often outperform senior B/C players. Whats critical to understand is how this relates to hiring - since the frameworks lends itself better to evaluating existing teams Here are some things to think about - A player does NOT mean senior- someone straight out college can be an A player - A track record of past performance and going above and beyond is a good indicator of future behavior and results - Time spent on C players is time poorly spent - over and over again this is the biggest mistake that managers and leaders make. The data tells you that it's not a good use of your time - spend time with the A and B players and get acceleration. Spend time with C players and get lower productivity How do you think about hiring and talent?

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Churn wasn't the problem. It was the symptom. A PE-backed digital health company was approaching exit. Six-month revenue churn had climbed from 6.7% to 14.2% across 6,000+ SMB customers. Leadership assumed onboarding was the issue. Not entirely true. The real problem: one engagement model applied to every customer, regardless of value. Lower-value accounts consumed disproportionate effort. Higher-value accounts couldn't reach value fast enough. Margins eroded. Churn followed. We didn't just address churn. We redesigned the model. → Onboarding: 90 days → 30  → Team: 16 FTEs → 8 on scaled operations  → ~90% adoption at graduation  → $1.5M in-year efficiency gains  → Retention improved 2%+ before the valuation event For PE-backed companies, elevated churn isn't an ops issue. It's a valuation risk. Full case study → https://lnkd.in/gxEPTFr3

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